Bridgestone's investment

Bridgestone's investment

TOKYO (AFP): Japan's Bridgestone Corp. is to invest 26 billion yen (US$228 million) to boost tire production in Asia, building new plants in Indonesia and Thailand, the Nikkan Kogyo Shimbun said yesterday.

In Indonesia, the major automobile tire maker plans a new plant with the daily capacity to produce tires with the rubber equivalent of 40 tons, according to the newspaper report.

This plant is to be operational from 1997.

Bridgestone already has a joint venture plant with an Indonesian company which can produce tires at the equivalent of 120 tons of rubber daily, it said.

In June, Bridgestone took control of the venture, raising its stake to 51 percent from 42.9 percent, and since the existing plant is operating at full capacity, it has decided to build a new plant, the newspaper said.

In Thailand, it plans to build a plant to double output of tires to a rubber equivalent of 80 tons per day, it said, adding that production would start by the end of 1998.

The company hopes to benefit from rising exports to neighboring countries, according to the report.